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Should You Invest In Atlanta Rental Properties?

There are many reasons to invest in Atlanta rental properties such as lucrative returns, growing population, great neighborhoods & school systems, good infrastructure, solid appreciation of properties, etc. Metro Atlanta is fast becoming a shinning star in the real estate investment sector.

Here are some conspicuous signs for investors to go ahead and plan out their investment in the growing Atlanta Real Estate Market in 2018.

Atlanta Housing Market has seen a constant growth in both the suburbs as well as the metro area over the past decade. Atlanta metro area is home to over 5.5 million, making this area a great place to invest in rental properties. Atlanta has a growing economy that is 8th in the nation for GDP and is home to a wide variety of business that includes Fortune 500 companies. Relocation of payment processing giant NCR is expected to bring more than 3,500 jobs to the metro Atlanta region.

Atlanta is projected to be the 6th most populated metro areas with 7.3 Million population by 2020 (US Census Bureau). Atlanta offers access to 3 major interstate freeways connecting major regions of the US (South east, North east, Midwest, West).

Atlanta is not only home to the world’s most traveled airport, Site Selection Magazine named Georgia the best state to do business for the fifth year in a row. Metro Atlanta ranks as the nation’s 6th largest information sector. Not to mention, social media giant Facebook is planning to build a sprawling new data center in the Walton County town about 40 miles east of Atlanta.

Atlanta has some of the best schools in the country such as Morningside Elementary School, Heards Ferry Elementary School, Charles R. Drew Charter School, Inman Middle School, Chamblee Charter High School and Early College High School At Carver. These are just a few to name. Overall, there are 100 schools in Atlanta. Having all these good schools is a good thing for renters in Atlanta.

Atlanta Real Estate Market Statistics 2018

Picture Courtesy – Atlantaga.gov

According to the Atlanta Journal Constitution, rent prices rose in 2015 by a margin of 8.1 percent compared to the previous year. In 2016, the rent rose by 6,5 per cent. Steady growth within the market has been bolstered by continued job growth coupled with a strong local economy.

By August 2016, the rent prices had grown for eight consecutive months. The city averted a late 2015 rental decrease that affected a majority of markets, mostly attributed to Atlanta’s robust job market. A big number of companies including Interface and NCR shifted their operations to Atlanta, GA bringing with them loads of job opportunities.

In July 2016, the average rent reached a high of $1,100 with an occupancy level of 94.5%. The current average rent stands at $1,309, a 3% increase compared to the year 2017 when the average rent was at $1,267. An upward trend of the average rent appreciating is evident. Considering current trends, the rent will continue increasing and anyone would gain if they invest in the current market handsomely.

Chart Courtesy – Trulia.com

Being the third largest metropolitan in the southeast, Atlanta attracts families from all over the Midwest as well as the southern united states. In the year 2017, 74,500 new jobs were created only in the Atlanta region. The figure represents an annual growth rate of 2.85% which is relatively greater compared to the current national average which stands at 2.35%. The job growth impacted the population by growing it at a 4% rate, which is definitely a promising sign for any property investor looking to buy property in Atlanta.

Atlanta Home Values Forecast 2018

According to Zillow.com, the current median home value in Atlanta is $236,638. Atlanta home values have gone up 12.4% over the past year and Zillow predicts they will rise 7.5% within the next year. Their 1-year forecast in the graph given below shows an increase up to $254,000 in March, 2019.

The median list price per square foot in Atlanta is $224, which is higher than the Atlanta Metro average of $117. The median price of homes currently listed in Atlanta is $310,000. The median rent price in Atlanta is $1,700, which is higher than the Atlanta Metro median of $1,400.

Chart Courtesy – Zillow.com

Atlanta Rent Prices Trend 2018

According to a report published in Hotpads.com, Atlanta’s rents are quickly on the rise, outpacing San Francisco. Intown rent prices continue rising, even though the city boasts almost twice as many new rental offerings as last year. The city’s rental housing stock has spiked overall by about 71 percent. In Midtown, it’s increased year-over-year by nearly 173 percent, per the report.

Chart Courtesy – Trulia.com

The good news is Atlanta renters have many new rental listings to choose from — the city saw 71 percent more newly-available rental listings come online over the past year. Renters in Midtown and North Buckhead really hit the jackpot, with each neighborhood reporting newly-available rental inventory increases over 150 percent year-over-year.

The median rent in Atlanta is $1,491, up 5.0 percent from a year ago

Median rent for a one-bedroom in Atlanta is $1,440, up 4.9 percent year-over-year

There are 71.2 percent more new rental listings to choose from in Atlanta than a year ago

Chart Courtesy – Trulia.com

According to Forbes, The Atlanta-Sandy Springs-Marietta metro area is among the 20 best housing markets to invest in for 2018.

Here’s how the area stacked up among key metrics:

Average home price: $234,249

3-year population growth: 4.9%

2-year job growth: 5.1%

1-year home price growth: 8%

3-year price growth forecast: 24%

Homes are undervalued by 7% compared to the historic ratio of price and local income.

23 Reasons To Invest In Atlanta Rental Properties

Atlanta, GA is an investor’s goldmine. After experiencing years of slow growth, Atlanta, GA has come up to join some of the most prospective real estate investment hubs in the USA. By doing some research on the Atlanta rental property market, we give you 21 reasons to invest in Atlanta rental properties in 2018.

Among the best investments in Atlanta, are mortgages. The fact that home prices are relatively below income levels, is an indication that they still got a space to flex and improve, leading to equity cushions.

Currently, construction loans have a lower risk level courtesy of the expanding demand. Fulton county, Gwinnett and DeKalb are some of the regions with a prospected construction increase with a projection of more than 10,000 units in each.

Solid appreciation values are just some of the many reasons to invest in Atlanta rental properties in 2018. With an average 500 people moving to Atlanta everyday, the returns will keep on appreciating and given that real estates are assets, profits continue for a lifetime.

Supply and Demand are the main pillars of real estate growth, If there’s a high demand of units, the expected returns are also expected to be high. With the previously discussed numbers, demand of units in Atlanta is only going to increase. Investing in anticipation gives the investor an upper hand especially where the numbers have been confirmed.

lnvesting in rental properties in Atlanta that will grow or hold their value is just but the goal of any investor. Property should grow in value in a way to ensure that the investors money is secure, while also bringing in income of service. The promising state of the Atlanta Real Estate Market makes it safe for any investor to put their money and expect modest returns.

Local Infrastructure in Atlanta is also a major boost for any prospective investor and one fo the best reasons to invest in Atlanta rental properties. With an international airport, plenty of movie studios and a well structured education center, market will never be an issue as long as quality is provided. Georgia Tech, Emory, University of Georgia and Georgia state are just some of the institutions providing plenty of market.

Corporate are also shifting base and opening new branches in Atlanta. They include Google, eBay and Porshe, all whom will bring a sizable number of clientele. This another enticing reason to invest in Atlanta rental properties in 2018.

A majority of publications, including CNN Money, Forbes, and Kiplinger magazines have rated Atlanta, GA as the most promising city and the best city to invest in. Hence, you can consider investing in Atlanta rental properties without any doubt.

Presence of a vast number of fortune 500 companies, the weather and support from local authorities are just some of the criteria used in considering to invest in Atlanta rental properties in 2018.

Other key metrics that were considered include, 1. Average home price: $234,249 2. 3-year population growth: 4.9% 3. 2-year job growth: 5.1% 4. 1-year home price growth: 8% 5. 3-year price growth forecast: 24% 6. Homes are undervalued by 7% compared to the ratio of price and local income.

According to Trulia, median home values in Atlanta grew by 11 percent in last year alone, and most experts and economic predictors suggest this growth will continue for the foreseeable future. This is great sign for the Atlanta Housing Market.

Due to increased population and low inventory, rental rates in the Atlanta area are on the rise. Thus, there is a potential for greater cash flow for rental properties in Atlanta.

Low inflation of overhead expenses of rental properties such as insurance and maintenance costs. The value of real estate in Atlanta has historically increased at a higher rate than the rate of inflation. You are thereby ensuring that your “real” or hard asset in Atlanta will help maintain your wealth and your standard of living.

Real estate investing allows for several tax deductions.The cost of financing and operating your property can be deducted from the income you earn. This includes mortgage interest, property taxes, property management fees (if applicable), repairs, maintenance, and other related expenses that can be deducted from your gross rental income, thus minimizing the amount of tax you will pay.

According to AJC.com, Atlanta has been the number one moving destination for the past six years. It may be surprising that the suburbs in Atlanta are experiencing a lot of growth – not just the metropolitan area.

Some of the best areas in the Atlanta Housing Market are Midtown, Buckhead, Sandy Springs, Vinings, Dunwoody, etc A lot of businesses are located there so its easier to rent out the property plus the value goes up pretty fast.

The median value of the homes in Buckhead Heights is $250,500, twice as large as the national average. On the other hand, the median rent is at $ 1,785. Buckhead Heights suburb is ranked one of the best in Atlanta Real Estate Market.

Midtown Atlanta is the second largest business district in the city of Atlanta, situated between the commercial and financial districts of Downtown to the south and Buckhead to the north. The median home value of Midtown Atlanta is at $276,125. Median rental price, on the other hand, is $1,224. 56% of its population chose to rent their homes, while the remaining 44% own it.

Atlanta, GA has most diverse employment Base and it is its greatest economic asset.

14,453 job were created through Invest in Atlanta Programs in 2017.

Top Polymer Enterprise plans to initially create 70 jobs and invest $15 million in its new plant. The facility will be the first in the United States for the company, which exports to more than 30 countries.

Many corporate relocations are underway to the metro Atlanta, such as IT headquarters for GE Digital and a distribution center for the Variety Wholesalers subsidiary, Roses and Maxway.